IFRIC 17 — Distributions of Non-cash Assets to Owners


  • IAS 1 Presentation of Financial Statements (as revised in 2007)
  • IAS 27 Consolidated and Separate Financial Statements
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets


17 January 2008 IFRIC D23 Distributions of Non-cash Assets to Owners published Comment deadline 25 April 2008
27 November 2008 IFRIC 17 Distributions of Non-cash Assets to Owners issued Effective for annual periods beginning on or after 1 July 2009

Summary of IFRIC 17

IFRIC 17 Distributions of Non-cash Assets to Owners applies to the entity making the distribution, not to the recipient. It applies when non-cash assets are distributed to owners or when the owner is given a choice of taking cash in lieu of the non-cash assets.

IFRIC 17 clarifies that:

  • a dividend payable should be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity
  • an entity should measure the dividend payable at the fair value of the net assets to be distributed
  • an entity should remeasure the liability at each reporting date and at settlement, with changes recognised directly in equity
  • an entity should recognise the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss, and should disclose it separately
  • an entity should provide additional disclosures if the net assets being held for distribution to owners meet the definition of a discontinued operation

IFRIC 17 applies to pro rata distributions of non-cash assets (all owners are treated equally) but does not apply to common control transactions.

Effective date and transition

  • IFRIC 17 is to be applied prospectively.
  • IFRIC 17 is effective for annual periods beginning on or after 1 July 2009. Earlier application is permitted, with some restrictions.

Press release

Click for the IASB Press Release (PDF 51k).

IAS Plus Newsletter

Click for the IAS Plus Newsletter on IFRIC 17 (PDF 104k).

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